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The End of the Free Market Era (1988-2008)
Dick Morris.com ^ | 11/26/2008 | Dick Morris

Posted on 11/26/2008 11:57:08 AM PST by fiscon1

The subprime mortgage crisis is only the Sarajevo which caused the financial collapse. The real reason is the massive explosion of debt at all levels and in all forms that has engulfed the world. Since 1992, the total of debt in the world has gone from a level equal to global GDP to a level that is now 3.7 times as much as global GDP. This debt explosion, explained in Charles Morris' book (no relation) The Trillion Dollar Meltdown, consists not only of mortgages, but bonds for corporations that can't repay them, credit cards for consumers who are neck deep in debt, car loans for drivers who can't meet the payments, student loans that are swamping young couples, and default insurance sold by companies that can't make good on their commitments. This massive debt has to be sweated out of our global economic system like a heroin addiction.

(Excerpt) Read more at vote.com ...


TOPICS: Business/Economy; Government; History
KEYWORDS: 110th; bho2008; bush; dickmorris; domesticpolicy; economy; freemarkets
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1 posted on 11/26/2008 11:57:09 AM PST by fiscon1
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To: fiscon1

It’s all a lie, we did not have free markets. We had government control, regulations and interference. Worst-absolute worst-interference was with the money supply. Always playing games. Alan Greeenspan was too smart by half. Fact is no one, NO ONE, can can control, manage the currency. Only everyone acting independently/in cooperation, i.e., the market can do it. Greenspan only gave the illusion of doing a good job, because it worked in the short term putting off the inevitable day of reckoning.


2 posted on 11/26/2008 12:04:23 PM PST by all the best
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To: fiscon1

Welcome to FR!


3 posted on 11/26/2008 12:04:39 PM PST by IGOTMINE (1911s FOREVER!)
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To: fiscon1

for later


4 posted on 11/26/2008 12:06:47 PM PST by Monsieur Poirot
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To: all the best

The free market died long before 1988!

Long live socialism and we slaves who are blessed to serve our socialist masters to supply all others with a better standard of living then they are will to produce on their own.


5 posted on 11/26/2008 12:08:00 PM PST by stockpirate (Compassionate Conservatism = Republican Socialism.)
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To: fiscon1
By this standard, the free market era began in 1981 and the democrats began choking it to death beginning in 1984.

The fact it took so long to stop its heart is a testament to the power of the supply side concept.

6 posted on 11/26/2008 12:08:43 PM PST by skeeter (Its Barry's fault)
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To: fiscon1
there has been no free market for decades

unless one considers Wall Mart, Home Depot, Capital One and Fannie Freddie examples of "real competition" in a free market

7 posted on 11/26/2008 12:15:34 PM PST by KTM rider (keep thy powder dry, gird thy loins, and brace for the winds of change)
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To: all the best

I couldn’t agree more regarding the money supply and in fact most of our economic problems come with the atrocious money supply management by the fed.


8 posted on 11/26/2008 12:25:12 PM PST by fiscon1
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To: IGOTMINE

thank you.


9 posted on 11/26/2008 12:25:13 PM PST by fiscon1
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To: all the best
Only everyone acting independently/in cooperation, i.e., the market can do it.

How do you act independently/in cooperation?

A true free market can only exist without the existence of coercion, collusion, manipulation or fraud. Its never, ever, never going to happen. So forget it.

10 posted on 11/26/2008 1:09:46 PM PST by Realism (Some believe that the facts-of-life are open to debate.....)
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To: fiscon1
Good article.

Dick, you may be interested in this excellent analysis from 1933:

The Debt-Deflation Theory of Great Depressions.

11 posted on 11/26/2008 1:16:55 PM PST by fightinJAG (TWO BIG BUSH TAX CUTS EXPIRE AT THE END OF 2008. Happy New Year, love, President Obama)
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To: fiscon1

We haven’t had free markets since the creation of the Federal Reserve and fiat currency.


12 posted on 11/26/2008 1:20:41 PM PST by Bon mots
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To: Bon mots
Pharaohs and kings started manipulating the markets long before the Federal Reserve.
13 posted on 11/26/2008 1:24:40 PM PST by Realism (Some believe that the facts-of-life are open to debate.....)
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To: fightinJAG; fiscon1

Downloaded for later reading. Thanks!

I’ve also begun reading Murray Rothbard’s book on the Great Depression. If you like, I can send you a copy. FReepmail me an email and I’ll send it if you like.

It’s interesting reading, as he has been railing against the state of affairs since the Reagan presidency expecting a big meltdown at some point. He was (deceased now) one of the key economists from the Austrian school of economics - along with the heavy guns like Ludwig Von Mises, Jozef Schumpeter, Hayek...

It is interesting to read an economist who rails against the Keynsians and the Friedmanites as all wrong...


14 posted on 11/26/2008 1:31:02 PM PST by Bon mots
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To: all the best
It’s all a lie, we did not have free markets. We had government control, regulations and interference.

There was an enthusiasm for markets. Now there isn't.

Worst-absolute worst-interference was with the money supply. Always playing games. Alan Greeenspan was too smart by half. Fact is no one, NO ONE, can can control, manage the currency. Only everyone acting independently/in cooperation, i.e., the market can do it. Greenspan only gave the illusion of doing a good job, because it worked in the short term putting off the inevitable day of reckoning.

Okay, but as long as there are markets there are going to be attempts to mitigate or minimize downward trends. Governments attempt to do that. But so do non-government entities: this whole "derivative" thing was sold as a way of evening out risks.

The next boom we see, some people will say it's forever and others will try to figure out ways to make it be forever. The same ingenuity that's at work in the economy is at work in such schemes. Those plans don't work, but people never stop coming up with them.

15 posted on 11/26/2008 1:31:51 PM PST by x
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To: fiscon1

Dick Morris is interesting to listen to, but his predictions are usually wrong. Still an interesting article.


16 posted on 11/26/2008 1:33:56 PM PST by foutsc (Nietzsche is Dead)
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To: Monsieur Poirot

ping


17 posted on 11/26/2008 2:51:52 PM PST by Glacier Honey
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To: fightinJAG; fiscon1
As per my previous post, I have found an active link for the book by Murray Rothbard, "America's Great Depression". It is still online and still free.

"America's Great Depression"

The folks from the Ludwig Von Mises Institute want to spread the word about free markets and government non-interference in those markets.

Looks like Bambi is going to turn that all on its ear. His people are telling him that there was not enough regulation, and so we will get more of the medicine that made us sick in the first place.

18 posted on 11/26/2008 4:01:23 PM PST by Bon mots
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To: Realism
Pharaohs and kings started manipulating the markets long before the Federal Reserve.

...but not in America.

Read Rothbard's book, or the writings of any economist from the Austrian School of Economics - the likes of which can be read for free on the pages of the Ludwig Von Mises Institute.
Tons of good reading over there.
If you find something you like that is not free, support them by ordering it from the institute. We need to help conservative institutes like that fight the good fight.

19 posted on 11/26/2008 4:04:13 PM PST by Bon mots
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To: Bon mots

Thanks. I’m going to read that.


20 posted on 11/28/2008 1:59:27 PM PST by fightinJAG (TWO BIG BUSH TAX CUTS EXPIRE AT THE END OF 2008. Happy New Year, love, President Obama)
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